# In the matter of Polychroic Petrochemicals Pvt. Ltd. MA 362-2019 In CP (IB)1313(MB)-2017

> NCLT judgment dated 2019-02-20. Citation: TCN-2019-NCLT-04755. MA 362/2019 was filed under Section 33(2) of the IBC, 2016 to liquidate Polychroic…

- **Court:** NCLT
- **Order date:** 20 Feb 2019
- **Citation:** TCN-2019-NCLT-04755
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/polychroic-petrochemicals-pvt-ltd-ma-362-2019-in-cp-ib1313mb-2017-131f3457

## Summary

### Background

MA 362/2019 was filed under Section 33(2) of the IBC, 2016 to liquidate Polychroic Petrochemicals Pvt Ltd, the Corporate Debtor. The application states that under a prior order of the Tribunal dated 23.10.2018 and upon the decision of the CoC in its meeting dated 2.11.2018, the CoC decided to reject the resolution plan and liquidate the Corporate Debtor. The Resolution Professional highlighted several points regarding the rejection of the resolution plan, including ineligibility under Section 29A of the Code, payment priority to Financial Creditors over Operational Creditors, and a cut-off date for considering creditor claims.

## Facts

MA 362/2019 was filed to liquidate Polychroic Petrochemicals Pvt Ltd under Section 33(2) of the IBC, 2016. The CoC rejected the resolution plan in its meeting on 2.11.2018, based on concerns raised by the Resolution Professional. These concerns included the resolution applicant's ineligibility under Section 29A of the IBC, unfair payment priority to financial creditors, and a problematic cut-off date for creditor claims. The Resolution Professional also noted inconsistencies with IBBI regulations. The CoC unanimously decided to liquidate the Corporate Debtor. The applicant contended that MA bearing No.505/2018 was filed before this Bench for the liquidation of the Company under Section 33(2) of the IBC, 2016 on 9.5.2018. After hearing the application along with MA

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can interfere with the commercial decision of the Committee of …

**Ratio:** The Adjudicating Authority has no role to interfere in the commercial decision of the

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**Reasoning:** The Supreme Court has emphasized the limited scope of judicial scrutiny by the

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**Interpretation:** The interpretation of the law is that the commercial decisions of the CoC are

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**Application:** In this case, the CoC unanimously decided to liquidate the Corporate Debtor.

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Avil Me…
- **Respondents:** Polychroic…
- **Advocates:** IndrajeetH…

## Timeline

- **2017-09-15 — Moratorium D…**: Moratorium declared vide…
- **2018-10-23 — Tribunal…**: Order of the Tribunal related…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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